NEARLY 500 jobs are being lost in the Medway Towns after two companies delivered two separate hammer blows.

The Co-operative Group has confirmed it will close its depot at Courtney Road, Gillingham, meaning the loss of 253 jobs.

And defence equipment giant BAE Systems, of Rochester, has said it were drawing the curtain on 230 local jobs.

British industry was left reeling after the announcement by BAE to cut 1,400 jobs nationwide, including the Rochester losses.

The company said that the cuts were essential to balance the workforce with the workload.

Despite BAE owning a 20 per cent stake in Airbus, the company that has 149 orders to build the world’s largest airliner the A380, it insists the cuts are still necessary.

BAE manufactures aircraft electronics, defence repairs and defence electronics among other projects. The company used to be the biggest employer in Medway with around 6,000 workers but now the figure stands at 1,850.

Avionic systems managing director, Mike Austill, said: "We have failed to win a number of key programmes both military and civil that have been awarded to our competitors.

"We deeply regret having to make this announcement - this decision has not been taken lightly, but having considered all other options available, we believe it is the correct one in terms of securing the short and long-term health of our business."

Meanwhile, managers at the Co-operative Group are talking to 253 members of its workforce at the doomed Gillingham depot to discuss relocating to a new centre in West Thurrock, due to open in March 2006.

A spokesman said the relocation from the busy branch, near Gillingham Tesco, was part of the group’s plans to rejuvenate its food distribution service.

He added: "We have struggled for warehousing capacity for too long. This has affected our service to stores and, in turn, the choice of products available to Co-op customers. This is unacceptable."

Trade unions have expressed their concerns over the huge job cuts. Amicus warned "these are highly skilled jobs, and when the jobs have gone, the skills will have gone with them".

Trade union Usdaw, which represents the Co-op workers said it would be talking to the company about the move.

One worker, who asked not to be named, said yesterday staff were still unclear about what was happening with their jobs.

He said: "I don’t really know what’s going on. We’re talking to the trade union about what to do next. I don’t like the thought of travelling to Thurrock every day though."